Unit 2 - Enabling an organization’s strategy through HR

Tutor – Ms. Shania Mohammed

Certificate in Human Resource Management

Enabling an organization’s strategy through HR

Many experts believe that HR has a holistic perspective on talent alignment to the business
strategy. Those who follow the HR space, in fact, know that helping with “business strategy” is
arguably the profession’s Holy Grail.

Emily Smith, senior manager, Organization Transformation & People, BPI group, shared some
thoughts with HR Dive on the five most critical roles today for HR in shaping business strategy.

Ensure alignment around the organization’s vision and values as a solid foundation for
strategy 

Business leaders sometimes focus so much on strategic planning and day-to-day operations that
they can lose sight of the core of the organization the vision and values. HR, as organization and
talent experts, can “re-ground” business leaders in the vision around what the organization’s
purpose is and the values that drive people’s motivations and behaviors. HR, in facilitating
discussions with the leadership team, can refocus the organization on what’s important and
reignite the vision and values. 

HR leaders can also play a powerful role by modeling organizational values in their own team’s
behavior and actions, which can be especially helpful during the changes that a new strategy
creates.

Keep culture top of mind as an enabler of strategy 

The best of strategies can be derailed by a dysfunctional culture. A great culture powerfully
enables the right strategic vision and plan. Leaders must think carefully about how their
organization’s culture aligns and support its strategy. 

As the only function with an organization-wide view on employee’s performance and

effectiveness, HR is ideally positioned to drive the right conversations about the current culture
and how the culture may need to evolve to support the strategy. The most successful HR leaders
help leaders and employees alike articulate the desired culture in specific, relatable examples and
behaviors.

Help leaders clearly identify and articulate the people components of the strategy 

While the organization’s financial goals are often front and center in a top-level strategy, in most
organizations, people and talent priorities are equally important.  These may include attracting
and retaining top talent, developing new core capabilities, or enhancing diversity and inclusion
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

all of which are driven or supported by HR in some way. HR can ensure that talent and people
factors are addressed head-on in the organizational strategy.

The people and talent requirements of the organizational strategy are owned by business leaders
and managers, but HR professionals can establish the people requirements and ensure that the
organization is set up to successfully execute on those requirements. HR often has access to
useful analytics and knowledge around the current and future talent strengths, weaknesses,
opportunities and threats, and can bring these insights to early stages of strategic discussions.

Build plans to align the organizational “levers” to support the strategy 

While the overall strategic objectives and major initiatives are critical, so are the cross-functional
plans that support execution of the strategy. In fact, many organizations fail when they don’t
have practical, tactical implementation plans that take into account the changes that must occur
to align the organization around the strategy.

HR can be an important partner in determining what aspects of the organization will need to be
addressed going forward, who will be impacted and how, and what actions will be required to
ensure success.

Keep employees engaged around the strategy and other changes ahead

HR is often able to tap into the opinions and feelings of employees across levels, business units,
functions and geographies. Engaging employees around the strategy early-on is critical for
capturing their hearts and minds in the long-term. With people engaged, the strategy moves from
mere words on paper to a blueprint for success.

HR can help solicit employee feedback, ideas, reactions and suggestions about what the strategy
should be and how it should be implemented. If there are major changes ahead such as a
restructuring or a new technology implementation HR also can act as a “change architect:”
creating and executing strategies and plans necessary to lead and communicate the change.

At many organizations, senior executives create a strategic plan, only to have it sit on a shelf and
gather dust. That leaves the organization investing time and resources in all the wrong places. At
other workplaces, there may be no strategic plan at all.
HR professionals can take a key role in shaping their organization's strategy and contributing to
its future success because they know the workforce better than most, according to Michael
Wilkinson, managing director of Leadership Strategies Inc. in Atlanta.
"We need to be at the table when strategy is designed. We need to be at the table when strategy is
implemented," said Wilkinson, who spoke at a concurrent session at the Society for Human
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Resource Management 2016 Annual Conference & Exposition in Washington, D.C., on June 21.
"But we have to prove we deserve that seat."

HR professionals can influence their organization's strategy by:

 Promoting strategy development at the organizational, division and department levels.

"We should be asking the strategic questions at every level of the organization.: Where
are we going? What do we need to be doing to get there?" Wilkinson said.
 Providing strategy development training and resources to the organization. "We have to
equip our people to do their work," he said.
 Modeling strategy by developing a strategic plan for the HR department to demonstrate
its value.

As a first step in developing a strategic plan, assess where the organization is today. Frequently,
senior leaders have a great vision, but they don't have a clear and accurate picture of the
organization's current status. They may see only the strengths or only the weaknesses, Wilkinson
said.
Then, have executives create a shared vision of what they hope the organization will look like in
the future. Encourage senior leaders with differing visions to debate once where the organization
is going but then to agree to go in the same direction.
Another challenge is understanding what is critical to the organization's success. It may not
always be obvious. What key conditions must be created to help the organization succeed? What
are the barriers to that?
Next, identify the "drivers" within your organization. They are the people who can get things
done.
"The drivers have to break through the barriers to get where we want to be," he said.
Finally, determine how the organization will monitor and measure its progress toward achieving
its objectives.
Many strategic plans fail because organizations never get around to the monitoring phase,
Wilkinson said. Some make the mistake of measuring activities instead of results. For example,
an organization might say its objective is to hold two membership drives a year without stating
how many new members it would like to recruit.
Another common mistake organizations make is confusing goals and objectives, he said.
A goal is a broad, long-term aim that defines the accomplishment of the mission, he explained,
while an objective is the specific, quantifiable, realistic target that can help you measure whether
you're accomplishing the goal.
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Other top reasons strategic plans fail include inadequate planning and failing to include key
people in the planning, he said.

For many business owners, the role of human resources may not be the first thing to come to
mind when considering organizational strategy. Yet that mindset is shifting. Here's a closer look
at how HR is evolving into a key strategic player within an organization the role it can play in
promoting organizational strategies, actions within a successful model of implementation, and
the tools to help make it happen.

HR evolution
Compliance, time and attendance, hiring, onboarding, and benefit management are long-time
staples of traditional HR responsibilities. Increasingly, the strategic merits of these
responsibilities are being recognized across the business. At the same time, HR technology
solutions are helping HR managers support organizational leaders with the information needed
for confident decision-making. This has resulted in a shift in how HR fits into the organization.
In an interview with Gene Marks, Tom Hammond, vice president of corporate strategy and
product management for Paychex, says what he looks for in an HR director extends far beyond
the administrative paper-pushing stereotype.

"I'm looking for a strategic leader capable of doing a complete analysis of my own organization,
looking for where I have strengths and weaknesses," Hammond says.

HR leaders' perspectives mirror that of Hammond's. For the second year in a row, the Paychex
Pulse of HR Survey reveals that 80 percent of HR leaders at small and mid-sized businesses feel
their department has a voice when it comes to overall company strategy. These leaders cited
"strategic partner" as their primary role in HR. In contrast, only 12 percent of respondents felt
their role was primarily administrative, a decrease from 2017.

Matthew Keup, Paychex HR services area manager, explains more about HR’s increasingly
strategic role. "When there is a lack of perceived value of an HR role or department it's due to a
lack of in-depth understanding of all facets of the organization how they work, what makes them
successful, and how each role in a business impacts the other roles and success of the business
endeavor," Keup says. "The power of offering management a choice of resolution to a problem
affords them the luxury of some measure of control on the action plan and outcome."
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

The Drivers Model of strategy implementation

At the 2017 Society for Human Resource Management (SHRM) Annual Conference, presenter
Michael Wilkinson, founder and managing director of Leadership Strategies, Inc., explained that
organizational business strategies often fail because they're too complex, and they're not made
clear or accessible to people at every level of the organization. To succeed, a strategic plan must
be divided into different elements for execution. Every step should be showcased.

Wilkinson offered the Drivers Model of strategy implementation, which has five components
that can be used to move an organization's status quo toward its strategic goals. It serves as a
guide for HR leaders to helping shape organizational strategy and align those strategies with
business goals. The five components are:

 Develop an accurate picture of today: Where are things today, and what is not working?

 Create a shared vision: Where are we headed? What needs to change? What will be the
payoff for all these efforts? Define your future vision and clearly quantify why people should
buy in.

 Understand your barriers and critical success factors: What is most likely to get in your
way? What are the critical success factors that you must secure to make your vision a reality
(e.g., available budget or executive support)?

 Define your drivers: What strategies and actions will be taken to move the goalpost
forward, and who will carry the ball?

 Monitor your progress: Track your progress against your goals and determine whether
adjustments need to be made to your plan.

HR's role to promote, provide, and model

Following a systematic plan such as the driver's model, HR can lay the foundation for successful
strategy implementation. However, the role doesn't stop there. As Keup points out, it's also
critical to secure support internally at all levels. This leads to agreement, buy-in on the process,
common strategy language, and increased commitment to participate and follow-through. HR
professionals can put their role into action by promoting, providing, and modeling.

Promoting. Whether it's a departmental strategy to address one specific issue or a company-wide

initiative to move the goalpost forward, encouraging systematic strategic planning leads to better
outcomes and organized workflows.
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Providing. HR departments can provide support in the form of training opportunities

or reporting to help leaders and their teams think through the strategy process.

Modeling. HR departments can also lead by example. Showcase the power of strategy by having
a strategic plan for your HR organization and making it widely available throughout the
organization as a model for other departments.
HR tools for organizational strategy

For strategy implementation, both within the HR department or company-wide, analytics and
technology are tools that can deliver the solid foundation management needs to drive effective
decision-making.

Reliable data is a critical input into major business planning activities. Organizations that don't
do basic tracking of turnover by position, return on investment for adding headcount to current
staff, or lost workdays, should start data collection in these areas as soon as possible, Keup says.
From budget forecasting to year-end financial reporting, access to data is essential for a business
to develop success strategies and remain competitive.

Human capital management is another area where data plays a key role. In his interview,
Hammond points out that the way for business owners to drive their own results is through good
people. After all, it's your staff who is ultimately responsible for implementing your business
strategies and influencing the organization's future. Finding the right people, getting them hired
and on board quickly, and ensuring they remain engaged by empowering them to do what is
necessary to help your business is how you take your business to where you want it to go.

New technologies make it easier to collect data, present and analyze information, and execute
more effectively based on findings. Companies of all sizes are leveraging technology to
improved targeted areas of business. These technologies include:

 Integrated recruiting support. Effective automation can help increase workforce stability,
productivity, and competitiveness. Today's integrated recruiting solutions can simplify the
process of posting jobs, attracting candidates, screening applicants, managing the interview
process, and successfully onboarding candidates.

 Benefits administration. New technology not only promises to reduce cumbersome

paperwork, but can provide real-time data visibility, tracking, accountability, and cost
controls.

 Time and payroll. Manually handling functions such as scheduling, payroll, and
compliance with tax requirements is time-consuming and increases risk of errors.
 Unit 2 - Enabling an organization’s strategy through HR
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Technology simplifies labor cost planning and controls, reduces administrative costs, and
increases communication and productivity.

 Self-service portals and mobility tools. There is a growing trend in the widespread use of
employee mobility tools that take advantage of the increased prevalence of mobile devices to
support workers separated by time zones and geography.

Expanding HR's capabilities

Sticking to manual processes could mean lost opportunities for your organization and its leaders.
By outsourcing the technologies listed above, your HR peers are saving time and money,
improving recordkeeping, and ultimately getting the information they need to become more
strategic and efficient on the job. They are expanding their team and department's capabilities to
be a greater service to the organization. Moreover, outsourcing is more than technology. You get
access to best practices and advice from a community of HR specialists whose sole job is to help
the HR departments of other organizations helping you sharpen your talents and focus on
partnering with senior management to develop the best possible organizational strategies.

In today's competitive business landscape and tight labor market, organizations need a strategic
planning process more than ever before. When bolstered with outsourced technology and the
resulting expanded HR team, HR leaders are positioned to play a key role in establishing a clear
framework for organizational strategic planning, providing the necessary resources for training
staff on strategic models and a working example of a successful strategy in play.